Global equities surged as optimism grew that the U.S. and China could strike a long-awaited trade deal, after Beijing issued a constructive statement signaling progress ahead of a possible meeting between the two nations’ leaders.
The improving mood in markets pushed gold and U.S. Treasuries lower, as investors rotated out of safe havens amid rising risk appetite.
The coming week is set to be crucial for markets, with big tech earnings on deck and the Federal Reserve widely expected to cut interest rates. In Europe, attention turns to Thursday’s ECB meeting, where policymakers will release their initial 3Q GDP reading alongside a decision on borrowing costs.
In Asia, markets posted strong gains, with China’s benchmark indexes up 1% and Japan rising 2%. The Euro Stoxx 50 climbed 0.5%, while U.S. futures advanced about 1% on average, extending record highs.Meanwhile, Argentine assets rallied sharply after President Javier Milei’s stronger-than-expected showing in Sunday’s legislative elections, boosting confidence in his market-friendly reform agenda